Analysis of Big Tech Stock Prices

INFO 523 - Spring 2023 - Project 1

Tech Titans: Christian Ortmann, Roxana Akbarsharifi, Abhishek Kumar, Shashank Yadav, Gorantla Sai Laasya, Divya Liladhar Dhole

Introducing the Dataset

  • Data was sourced from Tidy Tuesday, which pulled from Kaggle
  • Dataset consists of 14 Big Tech stocks and their respective economic metrics from 2010 to 2022
  • Contains some missing data points where companies were listed after 2010
  • Motivated to make low risk financial decision by analyzing past stock market trends

Question 1: How do stock prices change over time based on basic economic metrics

Line Plot and Bar Plot

Analysis

Company %CAGR
TSLA 41.51
NFLX 32.37
NVDA 30.47
AAPL 24.36
AMZN 21.53
ADBE 18.54
MSFT 17.13
CRM 16.28
GOOGL 14.25
META 13.15
ORCL 9.57
CSCO 5.17
INTC 1.77
IBM 0.83
Company Correction %
IBM -56.08%
TSLA -44.47%
CSCO -42.80%
INTC -34.84%
META -34.59%
ORCL -33.83%
CRM -33.05 %
NVDA -32.12 %
AAPL -30.82%
GOOGL -28.99%
NFLX -28.67%
MSFT -21.62%
ADBE -20.10%
AMZN -17.79%

Insights

  • All 14 stocks have a positive CAGR (compounded annual growth rate) over the twelve year period
  • Each company’s share price dropped by at least 15% during the COVID-19 pandemic, though some companies dropped more than others
  • Apple (AAPL) is the most popular stock based on trading volume

Question-2 Backwards verification: if we invested x amount of dollars in 2010, how much would it be worth in 2022, when would be a good/bad time to pull investment out of the market

Insights

  • From January 2012 to January 2022, Tesla’s stock price experienced significant growth, increasing by a factor of 20. At the beginning of this period, in January 2012, the stock price stood at 11.25, while by January 2022, it had surged to 2,412
  • Whenever the 50-day moving average (DMA) crosses above the 200-day moving average (DMA) during an uptrend, the stock rises, and when the 50 DMA crosses below the 200 DMA during a downtrend, the stock declines.
  • The Netflix is another example where 200-DMA crossovers 50-DMA, where downtrend is observed.

Conclusion

  • Out of 14 companies, 5 companies (TSLA, NFLX, NVDA, AAPL, AMZN) annual return rate is greater than 20%
  • SMA can suggest the movement of stock prices
  • Apple’s (AAPL) stock price trade volume is greater than 150 percent more than the most popular stock trade of Tesla (TSLA)

Thank You!